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The Impact of Trade Liberalization on Developing Countries

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Submitted By papillonroseee
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The effects of trade liberalization in agriculture, particularly of developing countries,

have become an important part of major studies in recent years after a decade of failed or

unsafisfactory WTO negotiations. The trade talks launched at Doha, Qatar, in November of

2001, are considered to be the first of nine negotiating rounds to address the “needs and the

interests” of developing countries (Elliott, 2007, p. 1). There have been many attempts to reach

an agreement between countries on agricultural liberalization. The failure to reacha solution still

persists, however, as was seen at the “Battle in Seattle”, in November of 1999 where strong

anti-WTO sentiment took to the streets in mass protests. (Fabiosa, 2008, p. 1). This anti-trade

stance asks the fundamental question whether agricultural trade liberalization is beneficial

to developing countries or not. The growth of globalization creates interdependence among

countries and increases the capacity of the economy of the countries to engage in international

trade. Trade liberalization in agriculture has significant benefits to individuals who devote their

lives to agriculture, mainly small farmers from developing countries. This idea would also

promote economic growth in these countries. In order to make trade liberalization in agriculture

an ideal concept, there are still a few hurdles that need to be cleared, such as granting developing

nations funds to meet environmental goals, abolishment of export subsidies, and lost tariff

replacement.

In order to allow participants to increase trade globally and benefit from it, WTO’s goal

is to lower trade barriers as much as possible among its members and to develop fairer trade

policies for everyone, including developing countries that comprise two-thirds of WTO

members (Fabiosa, 2008, p. 1).

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